That act was an escalation of the occupation of Taiwan’s legislature, which lasted 23 days and succeeded in blocking the trade bill. Since then Taiwan’s legislature has been considering, but has yet to pass, a bill on the oversight of agreements with China.

Ms. Tsai won the presidency by a large margin in January, in part because of concerns about her predecessor’s pursuit of close ties with China. Her Democratic Progressive Party was supportive of the protesters, known collectively as the Sunflower Movement, and a float at her inauguration on Friday was adorned with sunflowers.

“The Sunflower Movement was a political matter, and not really a simple legal matter,” Mr. Lin said in a written statement. “Under the principles of a little more harmony, a little less conflict, we will be as lenient as possible and withdraw this legal complaint.”

Mr. Lin said that the protesters’ goals of closer oversight of cross-strait deals had become a commonly accepted value in Taiwan, with lawmakers considering a legal mechanism for greater supervision.

During her inauguration address, Ms. Tsai called on China to look beyond the burdens of history to improve relations for people on both sides of the Taiwan Strait. China claims Taiwan as part of its territory and says it must be eventually united. Taiwan has been self-ruled since 1949, when Chiang Kai-shek’s Kuomintang troops fled after losing China’s civil war to Mao’s Communist Party.

Ms. Tsai acknowledged the history of talks between China and Taiwan but stopped short of endorsing the so-called 1992 Consensus that formed the basis of ties between China and Taiwan’s previous government. China’s Taiwan Affairs Office criticized Ms. Tsai for failing to clearly endorse the consensus, which states that mainland China and Taiwan are part of “one China,” each side with its own interpretation of what that means.

On Saturday, both official and semiofficial Chinese organizations that handle relations with Taiwan said that ties could continue only if Ms. Tsai accepted the consensus.